Home / Knowledge / News / Apparel/Garments / Vietnam garment sector braces for TPP
Vietnam garment sector braces for TPP
22
Jan '16
In order to take the complete benefit of Trans-pacific Partnership Pact (TPP), a free trade agreement involving 12 nations, the Vietnam National Textile and Garment Group (Vinatex) will increase the local content of its products to 60 per cent by 2018, according to Vietnam media reports.

Vinatex recently put into operation two yarn making factories and a dyeing-weaving plant, in order to get benefited from the “Yarn Forward Rule”. This rule requires the TPP member country to use a only yarn produced in any other TPP member country to receive duty-free access. Vinatex will also produce around 12,000 tonnes of knitted material a year. Apart from this six other garment making plants are also expected to be completed this year, said Vinatex chairman Tran Quang Nghi.

TPP will bring down the taxes by 100 per cent for Vietnam, as a result the Vietnamese textile and garment industry will get a boost in terms of volume and turnover. However, the actual benefit will take some time as the TPP needs to be approved by parliaments of all member countries before it can be implemented.

Meanwhile, Vinatex general director Le Tien Truong said that global demand for textiles and apparel will stay at around the same level this year as it was in 2015 since except for the US, major markets like Japan and Europe are showing low economic growth. He expects Vietnam's textile and clothing sector to grow at around 12 per cent this year.

The moves of countries in the region to devaluate their domestic currencies has reduced the production cost in those countries compared to Vietnam's, which might let the buyers to switch orders to other countries like Indonesia, Myanmar and China, said Nguyen Xuan Duong, general director of Hung Yen Garment Company (Hugaco). (NA)

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Alibaba Group

Apparel/Garments | On 18th Jan 2017

Alibaba forges global alliance to fight counterfeiting

Jack Ma led Alibaba Group has forged an alliance with various global...

Apparel/Garments | On 18th Jan 2017

HanesBrands earns above average scores in CDP 2016

Global apparel and innerwear retailer HanesBrands said it has...

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search